Welcome to My Blog! Here, I share my insights, ideas, and perspectives on topics that inspire me. I firmly believe that knowledge is a priceless asset—one that expands, not diminishes, when shared. You are welcome to use the articles posted here for non-commercial purposes, with proper attribution. This blog is published by Alsalca Research and Analysis Services. Papers can be cited at https://hcommons.org/members/alancajes/
Monday, June 30, 2025
Wednesday, February 28, 2024
On Data and Development Economics
by Alan A. Cajes, PhD
In an article entitled Development Economics, Debraj Ray discusses and explains some concepts that are central to the study of development economics, which studies the economies of the developing countries. The concepts include the conventional growth theory (movement to a steady state), the notion of convergence (getting some parameters right), nonconvergence viewpoint (movement along different paths due to differences in histories, institutions, etc.), and the issues related to the microeconomics of development (credit market, collective action for public goods, conflicts, institutional effects).
Although the author describes the concepts and how such concepts affect our understanding of development path of nations, Ray does not take any side. What can be inferred from the discussion is the non-empirical approach in discussing the concepts. The concepts, for instance, could not be used to assess the predicament of the Philippines as a national economy. Some of the concepts are explained via the experiences of different economies that have varied historical and related experiences. The author, however, points to the direction of empirical research in development economics. As researchers use information and communication technology (ICT)-aided empirical studies, there is a direction towards induction based on observations and hard knowledge.
I learned a lot while trying to grasp the various concepts presented in the article. This reminds me of a Facebook post by an economist from another university claiming that economics is moving away from theoretical analysis (theory explains the data) to data-based analysis (facts first, theory later). This also reminds me of Dr. Cielito Habito’s “PiTik” test or the use of key economic indicators like “presyo, trabahao and kita” (prices, jobs and incomes).
In one session where I had the opportunity to sit down with friends of Dr. Habito, he explained to us the other dimensions of economic development. He did not begin with theories or concepts. He showed us health and environment-related data. One has something to do with the issue of sustainability. Overfishing and extensive farming, which do not respect the ecological limits, will eventually constrain production, and then later the market prices.
Thus, the challenge posed by climate change, sea-level rise and related disasters will have to be factored in by specific communities and local government units (LGUs) because the negative effects are differentiated. Specific data on these issues will have to be gathered and analyzed so that these inform local policies and decisions.
I affirm this observation given some experiences I have in conducting natural resources and vulnerability assessments of some LGUs with funding support from the Climate Change Commission. What is evident is that communities need to generate quantitative data on the ground to inform economic policies. Thus, data science and data analytics is gaining ground as a tool for analysis by various disciplines, including economics.
Monday, April 4, 2022
On New Growth Theory
by A. Salces Cajes, PhD
There is no single formula for development. Economic development is
not just about infrastructure and economic activities, but also covers
knowledge, institutions, and culture. The new growth theory underscores the
role of ideas in promoting economic growth. The proper implementation of good
ideas can increase the country’s total productivity. Innovation serves as a
catalyst to hasten the occurrence of development, and innovation can be used to offset diminishing
returns. Indeed, sound ideas are part of
human capital. Thus entrepreneurial ability, as a form of human capital, can
help accelerate the process of economic development.
Structural changes and better economic outcomes can also be fostered by scientific ideas and rationality. That is why the importation of ideas is generally accepted as a strategy to stimulate economic development. However, ideas are an insufficient, although a necessary, condition for development. Bad ideas have wreaked havoc on the economies of many nations. Hence, the rejection of bad ideas is as important as the adoption of good ideas.
The story of economic development is paved with good and bad ideas. This is clearly demonstrated by the experiences of several socialist countries. In the case of the Philippines, the infusion of liberal ideas eventually awakened the consciousness of the natives about the bad economic situation they had after more than three centuries of Spanish domination. The lessons that the Ilustrados gained, by visiting and studying in other countries, enabled them to distinguish between right and wrong political and economic ideas.
The post-World War II Philippines was generally a poignant reminder of the failures of the import-substitution industrialization. This idea was adopted despite the fact that it was meant for industrial countries. To some extent, import-substitution industrialization produced some benefits, such as the development of local industries. However, in the long run, it became outdated and obsolete compared to what our Asian neighbors have adopted. Thus, the abandonment of unsound ideas is as good as the reception of rational ideas.
In the end, good ideas are like appropriate technologies. They have to be tested and analyzed to ensure that they fit the context of the place where they are to be planted. During my humble experiences in cooperative development, I have first-hand knowledge of the fact that a model that works in one cooperative won’t work when transplanted to another cooperative. There are several factors to be considered, such as the culture of the cooperative members and officers, their risk appetite, the type of business they are into, the supplies of raw materials, infrastructure support, access to funding and coaches, etc.
Sunday, January 16, 2022
On the Colonial Origins of Comparative Development
by Alan S. Cajes, PhD
Institutions that protect property rights and provide equitable policies are likely to promote meritocracy, thus invest more in physical and human capital development as drivers for increased income. Such institutions, at least in previously colonized countries, persist because the colonizers were able to settle. As such, they replicated their European institutions that promote ownership of private property, as well as checks and balance in government. The models of this approach are Australia, New Zealand, Canada, and the United States.
The same institutions are not likely to be established in colonized countries that discouraged the colonists to settle. What the colonists set up in the counties where they encountered high death rates, for instance, were extractive institutions that are still persisting. An example of such extractive institutions was exemplified by the Belgian colonization of the Congo – ownership of private property was not protected, there were no checks against government expropriation, and the institutions became instruments for the transfer of wealth from the colony to the colonizer.
The quality of institutions is important for the development and prosperity of national economies. The authors cited the different levels of well being between the North and South Korea, as well as the East and West Germany where one country stagnated due to extractive institutions that harbor central planning and collective ownership, while the other has high income driven by free market capitalism.
Institutions play a critical role in the success or failure of nations. In colonized countries like the Philippines, extractive institutions still persist. This happened due to the exploitation of the colonizers using a small number of landowners, who provided the plantations that produced exports for the colonizers. This class of entrepreneurs acquired the rights to extract minerals and harvest timber from the country’s natural resources. They also became the traders, bankers, and professionals that serve the export-import industries.
Such extractive institutions persisted even after the Second World War with the Philippines adopting an internal colonization mode of agricultural development. In this model, the Filipino elites replaced the colonizers and kept the plantation, natural resources-extractive, export-oriented, and import dependent economy. This small Filipino elites amass wealth, wield political power, and entrench themselves in government through regulatory capture. Thus, some political leaders unknowingly become puppets of these elites.
Reference
The Colonial Origins of Comparative Development: An Empirical Investigation Author(s): Daron Acemoglu, Simon Johnson, James A. Robinson Source: The American Economic Review, Vol. 91, No. 5 (Dec., 2001), pp. 1369-1401 Published by: American Economic Association
Tuesday, June 1, 2021
On Development Theory
Summary
Theology has been using scientific
discourses to form categories for analysis and reflection. Similarly,
liberation theology employed dependency theory to scientifically articulate its
pastoral-theological messages. This choice was borne out of experience rather
than epistemological or dogmatic considerations. Such experience led to
discernment and political commitment fueled by dependency theory, which falls
under the umbrella of underdevelopment theory.
Development theory was uniquely a Latin
American creation. It served as a reaction to the failures of the then
prevalent modernization theory and the national development project driven by
import substitution industrialization. But it was also a departure from the
orthodox Marxist analysis of development in low income countries.
The template for development after the
Second World War was the structural functionalist prescription of the West,
such as England and North America. This template implied formulating policies
and creating institutions that embrace free market capitalism, i.e.,
export-oriented, modern, capitalistic and industrial world. Dependency theory
was critical of this approach because it established, among others, a
dependency relationship between the underdeveloped and the developed countries.
The new breed of Marxists opposed the
orthodox Marxist view that capitalism is a logical step towards socialism, and
that it is necessary and feasible for the third world countries. They view
capitalism as inimical to the growth of underdeveloped countries because the
“ruling class” will keep the “ruled class” dependent in order to maintain their
economic status.
Personal Insights
The dependency theory saw the lopsided
balance of trade in favor of the rich countries, as experienced by the Latin
American economies. To address this, import substitution industrialization was
imposed to attain self-sufficiency, reduce the trade deficit, and generate
internal resources for industrialization. The theory, however, failed to
consider the huge investment required, as well as the necessary structural
reforms that are crucial, to make the import substitution industrialization
model to work. Liberation theology initially harnessed the concepts of
dependency theory. But Gustavo Gutiérrez later went beyond the theory and
admitted that socio-economic aspects were not all-inclusive.
The concept of sustainable development, for instance, recognizes the social and economic pillars, but added the ecological pillar as indispensable in creating a sustainable society. This implies that the social and economic imperatives must stay within the limits of the planetary boundaries. This also requires that the principles of equity and viability must be embed into the fabric of society.
References
Bombongan, D.
(2009). Liberation Theology and Dependency Theory: Tracing a Relationship. D
Bombongan. Hapág: A Journal of Interdisciplinary
Theological Research 1 (1), 61-91.
Bornschier, V. and
Chase - Dunn C. (1985), 'Transnational Corporations and Underdevelopment' N.Y.,
N.Y.: Praeger.
Cardoso, F. H. and
Faletto, E. (1979), 'Dependency and development in Latin América'. University
of California Press.
Sunkel O. (1966),
'The Structural Background of Development Problems in Latin America'
Weltwirtschaftliches Archiv, 97, 1: pp. 22 ff.
Tuesday, June 9, 2020
Monday, June 8, 2020
Weber’s Theory of Social Class
| Source: https://en.wikipedia.org/wiki/Max_Weber |
Sunday, February 16, 2020
On the Roots of Gender Inequality in Developing Countries
Culture and Development
Monday, December 8, 2014
Managing Cities
Cities are like ecosystems. They provide the life-support systems to all types of people who live within (and beyond) their boundaries. The life-support systems include housing, employment, trade, industry, commerce, education, transportation, water, electricity, sanitation, health care, security and recreation facilities, among others. Every person in cities has a specific location and profession (habitat and niche). By performing their respective professions in their respective locations, everyone contributes in maintaining a balance that sustains the life of cities.
But just like natural ecosystems, urban ecosystems can be degraded and destroyed. As members of urban ecosystems, it would help if everyone becomes aware of certain principles and approaches that will make cities become livable.
Principles
Nature works as a unitary whole, in an entirety of interactions that are beyond artificial divisions such as those imposed by people. Nature also operates based on certain principles that other fields call by other names like fundamental ecological processes or natural law. The principles are presented below. These are interrelated.
1. All forms of life are important
The tiniest plant and the tallest tree, the unseen microorganism and the biggest whale -- all have distinct roles in the ecosystem. If one of these becomes extinct, then there is a breakdown in the food chain, in the food web, in the food pyramid, in the cycle of materials and, therefore, in the ecosystem.
| Savannah, Georgia, USA |
2. Everything is connected with everything else
Both the living and non-living components of an ecosystem depend on each other for survival. None of these components is superior to the other and controls it. Because of interrelatedness, factors affecting one part would affect the rest.
3. Nothing is for free
Although the natural environment continuously recycles nutrients, the resources are not infinite. There is a limit up to which the ecosystem can support the demands of a population on its resources.
4. Nature knows best
For generations, nature has taken good care of itself. Man cannot determine nor dictate through legal standards or processes what is sustainable to maintain nature's delicate balance. He must, on the contrary, abide by nature's laws or suffer the consequences of nature's wrath.
5. Everything goes somewhere
| Singapore |
Materials in the environment are constantly reshaped or transformed, but nothing is created and destroyed. This is among the most basic principles of nature. However, man's constant interference with the natural processes and his misuse of the resources have created too much waste or useless resources, some of which have been transformed into harmful materials.
6. Everything changes
The interaction among living and non-living things in the ecosystem is a constant process and results in the transfer of energy from one thing to another, and the growth and eventual decay of all matter -- all of these in an endless cycle. The operation of natural laws assures that this process of change results in the health and maintenance of the environment.
7. Nature is beautiful and we are the stewards of creation
![]() |
| Kyoto, Japan |
Humanity is realizing only now its true role with respect to the environment -- and that is to manage it according to the laws which have enabled it to exist for many years. By abusing the environment, man, in the end, would end up the loser. On the other hand, as man learns to abide by the principles and processes of nature, he would benefit the most from it.
Approaches
The key approaches that this writer has learned from the training program on Managing Big Cities at Ecole National D’Administration are presented below.(1)
![]() |
| Paris, France |
2. There are always trade-offs involved in designing urban settlements, but what should be given priority is the general welfare of the population. For example, the right to own cars and use them is limited by the right of the pedestrians to have safe and conducive walkways, as well as parks and open spaces.
![]() |
| Paris |
3. Laws are meant to be implemented, not to be broken. For example, a Prefect, who is assigned as the representative of the French State at the local level, can file a case in an administrative court if local administrators fail to implement or violate any law.
4. Citizens can freely express their needs or desires and have the right to get answers. This could be traced to the long history of a semblance of direct democracy at the village level in France. For example, a citizen can demand a job for him/her or other members of the family and has the right to receive a response from the local executive. Another example is the case of a local chief executive who could not get the support of the citizens in implementing a project because of a failure to consult the stakeholders.
![]() |
| Paris |
5. A national land-use and housing policy is critical to ensure that local governments can develop their respective land-use and housing policies that conform to the mandates under a national policy. In the case of the Philippines, the national land-use act remains a bill. In the absence of a national guide, the local government units prepare their land-use plans, if at all, based on limited knowledge and skill in land-use and settlement planning. The result is an unplanned development that negatively affects the various aspects of community life.
6. There are many ways to manage the transportation requirement of an urban settlement, as long as proper analysis is done and appropriate policies are in place. For example, the City of Paris has reduced the volume of cars by 10% for the past 3 years by prohibiting cars in some roads, by making bus rides convenient, and by making the subways faster and safe.
![]() |
| Paris subways |
7. European cities have accepted the phenomenon of private vehicle owners ferrying passengers for a fee using an online registration system as a form of positive market behavior. For example, in the City of Paris, the use of private vehicles to carry passengers is not regulated by the State or by the city government.
8. There are many ways to manage the transportation requirements of cities. In the case of Paris, it has successfully used a combination of the following:
![]() |
| Paris |
9. Use of CCTVs, cars, horses and sufficient personnel as a tool for traffic management and for law enforcement. For example, the entire city has a network of CCTVs that could spot potential and actual violations.
10. Policy to prohibit the construction of buildings that uses negative energy. For example, a building permit is issued only if a property owner or developer could show evidence that it could generate more power than it will demand from the grid.
Implications to Philippine Urban Settlements
In view of the lessons learned above and the observations that this writer had noted down during visits to different cities, there are challenges and opportunities that if properly understood and appropriately responded to, would help the state and non-state actors to embark on a sustainable settlements pathway for the country. The key challenges and opportunities are described below.
Cities need to create an identity

Strategic planning practitioners know the importance of formulating a vision for cities based on the traditional strengths, weaknesses, opportunities and threats (SWOTs) or on the imagined and desired future state using the alternative inquiry (AI) approach. A vision statement is the main strategic goal of any organization. It embodies the set of future conditions that the stakeholders define and determine within a given time frame. Although futuristic in direction, a vision statement, however, needs to be grounded on a set of cultural givens and social artifacts. In this manner, a city’s identify is a product of its historical unfolding. This goes without saying, however, that cities could not innovate or could not create an identity based on a clean slate.
![]() |
| Seine River, Paris |
Cities need proper land-use plans and building designs
Land-use planning was earlier used as a means to stop the uncontrolled development of settlements. It is based on the power of the city, a power derived from the Constitution, to limit individual liberty to ensure that every citizen lives in a settlement that is fit for human habitation. It “creates the prerequisites required to achieve a type of land use, which is sustainable, socially and environmentally compatible, socially desirable and economically sound”. (2) It means creating a settlement that jives with its natural endowment. It means establishing what Justice Douglas described as a “quiet place where yards are wide, people few, and motor vehicles restricted” because these “are legitimate guidelines in a land-use project addressed to family needs.” He explained: “The police power is not confined to elimination of filth, stench, and unhealthy places. It is ample to lay out zones where family values, youth values, and the blessings of quiet seclusion and clean air make the area a sanctuary for people." (3)
Cities must have land-use plans that are based on best contemporary practices and they must implement land-use plans uniformly, consistently and well. In accordance to land-use plans, cities must also have suitable building design specifications to ensure that the edifices, transportation facilities, open spaces and houses blend with the overall design of the cities. Cities must not lose sight of their origin, at least based on the conventional view, that they emerged as a result of the agricultural revolution to support the requirements of an increasingly large population.
Cities must provide appropriate transport plans
![]() |
| Seine River & Notre Dame Chruch, Paris |
Cities must provide opportunities for people to walk safely from their houses to places of work, learning, worship and recreation. Researchers point out that walking provides fitness and blood pressure benefits. To encourage walking, cities should establish wide and unbroken pedestrian lanes, which are free from barriers like parked vehicles. To help improve the air quality, cities should plant tree species that have high capacity to absorb greenhouse gases along roads and in green parks. To avoid the conflict between trees and electricity lines and posts, as well as to reduce the risk of damage from typhoons, cities should pursue underground cabling of electricity and telephone lines. To prevent damage to the skylines and cultural heritage, cities should come up with an innovative way of using properly designed trains (aboveground or underground), bus rapid transit, trams, buses, cabs, jeeps and tricycles using electricity, liquefied petroleum gas or liquefied natural gas.
Cities must also come up with appropriate policies, laws and regulations. To limit the number of vehicles, cities should declare old vehicles as off limits in city roads, disallow vehicle ownership without appropriate parking areas, and limit the streets where vehicles are allowed.
Cities must provide suitable housing units
The presence of informal settlers, especially the urban poor, is a big challenge in city governance. However, it is a problem that will become serious over time if correct solutions are not implemented at the right time. The correct solution is to enforce the land-use plan, especially the easement requirements, remove the informal settlements, and transfer the settlers in suitable housing units located in appropriate areas. This means that transferees will not have difficulty taking public transportation to their places of work – which an efficient public transportation system should be able to provide. People can pay their respected housing units over time based on agreed upon dates.
Suitable housing units should be planned so that the health, sanitation and safety of the residents are not compromised. This means providing proper solid waste management, clean water management, effective, efficient and professional law enforcement, as well as sufficient health care services and facilities.
Conclusion
There is no easy way to pursue good governance in cities. But there are cities in the Philippines (Marikina, Davao, Puerto Princesa, Cagayan de Oro, etc.) and abroad (Savannah, Paris, Singapore, Taipei, Osaka) that are trying to show the way. If others could do it, then there is no reason why the rest could not do it.
Indeed, there are factors that contribute in creating unsustainable cities. These factors generally include the absence of the political will to implement rules, absence of civic will to make political leaders accountable, and absence of corporate citizenship from the business sector. The experience of other cities point to some ways to break the cycle of unsustainability. At one point, a good leader will be elected by the people and this leader will pursue that which is good for the greatest number. At another point, the people will make their voices heard and demand that their leaders do their job. Somewhere in the future, a visionary from the private sector will produce goods that will not harm human and ecological health, deliver services that will benefit the community and the government, and help shape the development of cities along such paths as green productivity, sustainable consumption, cleaner production or sustainability.
Monday, August 5, 2013
Beneficial Indigenous Microorganisms (BIMs)
The use of beneficial indigenous microorganisms (BIMs) is a
| Compost Tea used by Malagos Garden Resort in Davao City |
Tuesday, April 23, 2013
Assisted Natural Regeneration
![]() |
| Poblacion Norte, Batuan, Bohol |
According to the Food and Agriculture Office (FAO), assisted natural regeneration (ANR) “is a method for enhancing the establishment of secondary forest from degraded grassland and shrub vegetation by protecting and nurturing the mother trees and their wildlings inherently present in the area”. The ANR:
- Is a cost efficient way of regenerating forest.
- Provides potential livelihood opportunities for communities.
- Contributes to strengthening biodiversity,
- Provides hunting areas.
- Increases carbon sequestration and carbon sinks which contribute to climate change mitigation.







